Back in January, Bitcoin (BTC) spot Exchange-Traded Funds (ETFs) made their entrance onto U.S. stock exchanges, sparking a wave of interest from institutional investors. The move opened up a fresh flow of capital into Bitcoin, signaling a growing interest in the cryptocurrency.
What the Latest SEC Filings Reveal
According to recent filings with the U.S. Securities and Exchange Commission (SEC), most institutional investors who jumped into Bitcoin ETFs in the first quarter didn’t just hold onto their investments—they actually increased them during the second quarter.
Every quarter, professional investors in the U.S. are required to submit a 13F filing to the SEC. This document gives a rundown of the securities they’re holding, including any Bitcoin ETFs. By the end of the first quarter, there were 1,479 reported combinations of institutions and ETFs. This number reflects multiple positions held by some institutions in different ETFs, not 1,479 individual entities.
Matt Hougan, chief investment officer at Bitwise, shared on X that the most recent 13F filings show a 30% increase in these combinations. By the end of the second quarter, the number had grown to 1,924.
A few initial thoughts after reviewing the Q2 Bitcoin 13-F filings:
1) The Institutions Are Still Coming; Total Filings Are Up: I count 1,924 holder<>ETF pairs across all 10 ETFs, up from 1,479 in Q1. That's a 30% increase; not bad considering prices fell in Q2.
Of course, this…
— Matt Hougan (@Matt_Hougan) August 14, 2024
How Institutional Investors Are Managing Their Positions
So, what are these investors doing with their Bitcoin ETF holdings? The second quarter saw 44% of them increasing their positions. Meanwhile, 22% decided to stay the course and keep their holdings unchanged. On the flip side, 21% trimmed their positions, and 13% decided to pull out entirely. Hougan described this outcome as “a pretty good result, on par with other ETFs.”
Bitcoin ETF Adoption Continues
Hougan noted that the interest in Bitcoin ETFs among institutional investors hasn’t faded. He believes the momentum from the first quarter has carried over into the second quarter. “The trend is intact,” he said.
However, it’s worth mentioning that Bitcoin’s price didn’t perform as well in the second quarter compared to the first. The price mostly stayed between $60,000 and $70,000, which led some retail investors to exit the market.
But institutional investors have shown more resilience. Hougan pointed out that these investors aren’t quick to sell at the first sign of market volatility. “If you thought institutional investors would panic at the first sign of volatility, the data suggest otherwise. They’re pretty steady,” he said.
What You Can Learn from Institutional Investors
If you’re thinking about investing in Bitcoin, it’s useful to see how institutional investors are handling their positions. They’ve demonstrated a steady approach, holding on even when the market gets a bit shaky. This could give you some confidence if you’re concerned about the ups and downs of Bitcoin. It seems these big players are in it for the long term, which might be something to consider as you shape your own investment strategy.